THE consumer price index (CPI) rose by 4.4% year-on-year (y-o-y) to 123.1 in May 2021 versus 117.9 in May 2020, said the Statistics Department.

In a statement today, chief statistician Dr Mohd Uzir Mahidin said the increase in the overall CPI was due to the lower base effect last year.

He said the transport index recorded the most significant growth at 26%, followed by housing, water, electricity, gas and other fuels (3.2%), furnishings, household equipment and routine household maintenance (2.1%) and food and non-alcoholic beverages (1.5%).  

Citing the Food and Agriculture Organisation report, he said in May 2021, the global food price index increased 39.7% y-o-y to 127.1 and 4.8% compared with the previous month.

The sharp increase was driven by the increase in the vegetable oil index (+124.5% y-o-y) due to the surge in demand for biofuels, followed by sugar (+57.3% y-o-y), cereals (+36.6% y-o-y), dairy (+28.0% y-o-y) and meat (+10% y-o-y), he said.

Uzir said the increase in the grain index was the aftereffect of the drought in South America, which affected corn and soybean crops as well as coffee and sugar.

“The high demand from China exacerbated grain supply pressures and increased the producer costs of global livestock, and this situation is reflected by the increase in the local food and non-alcoholic beverages group in Malaysia.

“However, the annual increase in May 2021 was lower compared with the previous month due to the implementation of the Festive Season Price Control Scheme 2021 throughout May, which eased inflation pressures for this group,” he said.

Meanwhile, Uzir said the CPI without fuel increased 1.6% y-o-y in May 2021 to 113.8, adding that CPI without fuel covers all goods and services except RON95, RON97 and diesel.

“Out of 552 items covered in CPI, 363 items showed an increase in May 2021, while 123 items declined, and 66 items were unchanged.

“Non-durable goods (296 items) is a category that saw the most price increase with increases recorded in 225 items, while 57 items decreased and 14 items were unchanged,” he said.

Eight states surpassed the national CPI rate of 4.4% in May 2021, namely Terengganu (6.2%), Kelantan (5.6%), Pahang (5.1%), Kedah and Perlis (4.8%), Negri Sembilan (4.7%), Johor (4.6%), Selangor and Putrajaya (4.5%) and Perak (4.5%).

All states registered an increase in the food and non-alcoholic beverages index, with the highest increase recorded by Terengganu at 2.9%, followed by Kelantan (2.6%), Selangor and Putrajaya (2.1%), Pahang (1.9%) and Johor (1.6%), he added. – Bernama, June 25, 2021.